Syngenta & PepsiCo Partner to Boost Sustainable Procurement

As organisations continue to reduce Scope 3 emissions and enhance supply chain resilience, regenerative agriculture is becoming essential for procurement.

Not only can businesses support biodiversity and soil health by sourcing from suppliers that use regenerative practices but it also meets evolving consumer demand for transparent and sustainable sourcing.

With this in mind, PepsiCo, a global leader in food and beverages, has partnered with Syngenta, an innovator in technology and innovation in agriculture, to work on Syngenta’s Sustainable Sourcing Programme.

The initiative aims to improve traceable and regenerative agriculture in the food industry in a verifiable and transparent way.

It delivered 4,000 tonnes of sunflower oil that was produced using verified regenerative practices in its first year to PepsiCo from farmers across La Pampa, Buenos Aires, Santa Fe and San Luis. 

Santiago Desmery, Oils Category Leader, PepsiCo Southern Cone and Brazil, states: “Companies have a great responsibility to care for and improve the way we produce food. At PepsiCo, everything we do is driven by sustainability at its core, within the framework of pep+, our global transformation strategy that aims to create and inspire positive change on the planet and in people,”

“With this project, PepsiCo Southern Cone becomes the company's first region at LATAM level to have 100% regenerative agriculture in the sunflower it uses.”

Syngenta's Sustainable Sourcing programme

Syngenta's Sustainable Sourcing supports farmers in adopting regenerative agriculture practices by offering technical guidance and financial incentives. 

Farmers in the programme will get between 1% and 2% higher the prices of their sunflower grain (versus domestic market price). 

Growers can implement and track practices through the programme, such as cover cropping, crop rotation, use of biological inputs, efficient irrigation and pollinator habitat development.

These practices are also verified by third parties, enhancing traceability and transparency across the supply chain.

The programme is expected to boost the hectares that implement these practices by at least 25% in its second stage. 

Farmers can access constant support and monitoring from Syngenta and third-party verification to enhance security across the entire commercial chain. 

Mariale Álvarez, Head Sustainability & Corporate Affairs LATAM at Syngenta, explains: “At Syngenta, sustainability is embedded in the business. Regenerating soil and nature through practices that aim to leave the system better than we found it, is a commitment we assume every day.”

“This time, together with a strategic partner like PepsiCo, with whom we share this same vision, we are taking this commitment one step further: farmers who join our Sustainable Sourcing Programme receive an economic benefit by demonstrating the adoption of regenerative farming practices in their production process, which has a positive impact not only on the environment but also on their profitability.”

How can digital tools support procurement?

Organisations can utilise digital tools to streamline procurement by automating tasks like contract management, supplier selection and risk assessment.

AI and advanced analytics will help businesses to monitor supplier performance, identify cost-saving opportunities and predict disruptions.

Digital tools support ESG goals by maintaining compliance with responsible sourcing standards while tracking sustainability metrics.

Syngenta's Cropwise digital platform allows farms to maintain compliance with practices by verifying and measuring their generative practices while executing consistent improvement plans.

The Agriculture Value Chain (AVC) programme will also carry out the commercialisation of sunflower grain. This will support the exchange and export of oil.

What impact will this have on the future of procurement?

Syngenta’s Sustainable Sourcing Programme will leverage procurement to enhance sustainability as teams begin to play a larger role in meeting corporate ESG goals.

Sebastian Dicundo, President of Agribusiness Diorsem, explains the impact being a grower in the programme has had: “Being part of the Sustainable Sourcing programme means more than just improving soil health and producing more sustainably. The premium we receive for each ton of sunflower produced using regenerative practices is a real and tangible incentive.” 

Not only will procurement verify environmental claims and make data-driven sourcing decisions by using digital platforms like Cropwise but farmers can also improve long-term relationships between buyers and suppliers by receiving rewards for sustainable practices. 

Procurement’s focus will shift from buying commodities to sourcing verified outcomes such as increased biodiversity and reduced carbon emissions.

Organisations can use Syngenta’s Sustainable Sourcing Programme as a framework for procurement leaders to discover how they can scale across several countries, crops and industries to catalyse the transition to sustainable agriculture. 

As consumer and stakeholders begin to demand greater sustainable accountability, Syngenta’s Sustainable Sourcing Programme will ensure procurement strategies can remain cost-effective, regenerative, sustainable and future-proof. 

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